Staff Photo by Dave Flessner / Evergreen at Hickory Valley includes 200 apartments.A pair of East Brainerd apartment complexes were sold this week for more than $54 million as real estate investors continue to buy into the Chattanooga market.
The Hunters Point apartment complex on Standefer Gap Road in East Brainerd was sold to a California-based real estate investment firm for $35.8 million - only three years after a Hollywood, Florida-based real estate firm acquired the 260-unit complex for $31 million.
A couple of miles away on Hickory Valley Road, the 200-unit Evergreen at Hickory Valley was sold for $18.5 million to an Alpheretta, Georgia investment firm.
The apartment sales are the latest among nearly $400 million of multi-family real estate properties acquired in Chattanooga since the start of 2016 by regional and national real estate companies. Despite an influx of more than $1.2 billion of new rental properties in Chattanooga's downtown planned or built in the past three years, rental rates for apartments in Chattanooga continue to rise, according to a study released this week by the online apartment rental service Zumper.com.
Among the top 100 U.S. markets, Chattanooga is the 25th cheapest for apartment rental rates, Zumper said. But rental rates in the past year rose faster in Chattanooga than the U.S. as a whole.
Overall, the national one bedroom rent grew 1% to $1,250, but one-bedroom apartments in Chattanooga rose an average 6.5% to $930 a month.
The average U.S. rental rate for a two-bedroom apartments rose 0.5% in the past year to $1.493. But two-bedroom units rented in Chattanooga for an average of $930, which was up 14.8% from 12 months earlier.
Staff Photo by Dave Flessner / Evergreen at Hickory Valley includes 200 apartments.The faster growth in local rental rates appears to be drawing more investor interest in multi-family housing developments in Chattanooga.
Hunters Point, formerly the Elements of Chattanooga, was acquired by Everest Residential, based in Pasadena, California. The company has acquired 46 properties in the past seven years, including three in Knoxville.
Hunters Point includes one-, two- and three-bedroom apartments built just north of Hamilton Place Mall around a swimming pool, fitness center and community room. The complex was erected in 2015 and includes more than 250,000 square feet of buildings.
The Evergreen at Hickory Valley was erected in 1974 but was renovated in 2004. It includes 200 apartments located in a series of 3-story buildings.
Contact Dave Flessner at dflessner@timesfreepress.com or at 757-6340.
Biggest apartment complex purchases
Since the start of 2016, investor groups have paid more than $350 million to buy apartment complexes in Hamilton County. The biggest purchases include:1. Legends at White Oak in Collegedale sold for $41.8 million2. The Hunters Point in East Brainerd sold for $35.8 million3. The Shallowford Apartment Homes in East Brainerd for $32 million4. Village at Apison sold for $31.9 million5. Elements of Chattanooga on Standifer Gap Road sold for $31 million6. Riverview Grande in North Chattanooga sold for $31 million7. Bridgeway at Chattanooga on McCutcheon Road sold for $29.5 million8. The District at Hamilton Place on Gunbarrel Road sold for $28 million9. Arbor Creek Apartments on Standifer Gap Road sold for $26.6 million10. Standifer Place Apartments Homes on Jenkins Road sold for $25.5 millionSource: Hamilton County Register of Deeds